Leading bourse BSE plans to invest Rs 500 crore for setting up the international exchange, which will start off with derivatives products early next year, a senior official said today.

Government has already approved establishing BSE International Exchange and BSE International Clearing Corporation at Gujarat International Finance Tec-city (GIFT). (PTI)

Leading bourse BSE plans to invest Rs 500 crore for setting up the international exchange, which will start off with derivatives products early next year, a senior official said today.

Government has already approved establishing BSE International Exchange and BSE International Clearing Corporation at Gujarat International Finance Tec-city (GIFT).

“We plan to start the operation early next year. We are planning to invest Rs 500 crore for setting up of this exchange,” BSE Chief Business Officer V Balasubramaniam said emphasising the need to have a robust set up to accommodate international capacity.

In January 2015, it had signed an MoU with GIFT SEZ Ltd to set up the two entities at the GIFT city, India’s first International Financial Services Centre (IFSC).

“We will start with derivatives in the first phase and focus on putting infrastructure and getting companies listed on our bourse in the second phase. So, the focus initially is to get the inbound investment,” he told PTI here.
While noting that introduction of other products would depend on regulatory push, Balasubramaniam said a host of products would be needed in order to compete at the international level.

Besides, BSE has sought concession from the Reserve Bank of India (RBI) with regard to liberalised remittance scheme. Such a relaxation for the international exchange would help in boosting the participation of foreign entities, he added.

By month end, BSE plans to send a proposal seeking in- principle approval for the international bourse from the Securities and Exchange Board of India (Sebi).

In order to ensure hassle free and speedier operations, BSE has proposed a “single window” system for registering at the international exchange from Sebi.

“The registration process should be made less time consuming for those who are already on existing bourse like BSE…,” Balasubramaniam said.

He was speaking on the sidelines of a three-day India International Gold Convention here.
“We are asking for more and more products from Sebi. Government securities have come. We want Sebi to allow them retailed through our exchange,” he said.